Check Elderly Friends & Relatives Insurance Policies

Mumfo77

My dad recently passed away and my mum asked if I could take over the finances as this was something that my dad usually looked after. They received building and contents cover separately from two different insurers and have been loyal customers of both since the late 1990's. I was horrified to find out that they were paying £874 for building insurance alone!! When I queried the reason behind this price I was told that the particular policy they had (Zurich Solutions) was no longer on sale to new customers only existing customers. I was also given the excuse of "Well we never claim to be the cheapest insurer and they had legal expenses cover, temporary accommodation and accidental cover which is why they are paying more". Roughly £700 more than most people pay for buildings and contents cover combined?! Come on!! My parents were 74 and 79 years of age with no access to Internet for price comparison. Being of old school age they naively believed that they were loyal customers and as so would be offered the best price so therefore had no reason to doubt the price they were asked to pay each renewal. I was told quite sternly by the complaints operative that they are not a broker or a price comparison site and as such they merely take a premium from the previous year and add 20% to it which is in line with their guidelines. I have since cancelled both policies and taken up a new policy covering both buildings and contents insurance for less than £200 with Sainsburys Insurance which, may I say were absolutely fantastic when dealing with my mum. I urge people that have elderly friends or relatives please find out what insurers they are with and how much they are paying for their insurance as I would hate to see any other elderly people expoited in this manner, it's disgusting. I felt sick to think that over the years they have been ripped off. Please be aware!

FutureGirl

Not sure why you're kicking up a fuss about premiums when your parents were happy to pay that price.

There are various things your parents could have done if they weren't happy with the price IE looked online (even could have asked you to assist), or phoned some up like people used to do before the internet.

I see no reason to complain.

Mumfo77

So you would be happy finding out your parents were paying £700 over the odds for something would you?! As I said my parents were 74 and 79, they have been with Zurich since the late 90's and had no idea that this was excessive, they believed in loyalty which is something that no insurance company shows. As I've already said I've only recently got involved as my father has passed away, when he was alive he arranged all the bills and he appeared to be coping. I'm not kicking up a fuss I'm merely making other families aware so that they can step in sooner as the same could be happening to their loved ones. Elderly people can often be too proud to ask for help as they like to think they can manage however; if someone offers to help they may accept. I wish someone had given me this this advice when my dad was alive as I could've saved them an awful lot of money.

dunstonh

When I queried the reason behind this price I was told that the particular policy they had (Zurich Solutions) was no longer on sale to new customers only existing customers.

Which is understandable given it was a 90s product. It is also the reason why the premiums go up as the pool of people who have that product reduces each year. So, the costs of continuing that product increase.

I was told quite sternly by the complaints operative that they are not a broker or a price comparison site and as such they merely take a premium from the previous year and add 20% to it which is in line with their guidelines.

Which is correct.

I urge people that have elderly friends or relatives please find out what insurers they are with and how much they are paying for their insurance as I would hate to see any other elderly people expoited in this manner, it's disgusting.

They were not exploited. They just didnt shop around.

I felt sick to think that over the years they have been ripped off.

Maybe you should have helped them earlier as you knew they didnt have the internet.

So you would be happy finding out your parents were paying £700 over the odds for something would you?!

Not happy no. However, you cant blame others for that.

they believed in loyalty which is something that no insurance company shows.

It works both ways. Its a market that has no consumer loyalty either.

You are right to remind people but the complaint response is correct and there is no wrongdoing.

Quentin

Mumfo77 wrote: »

they believed in loyalty which is something that no insurance company shows.....

Were you not in a position to challenge their belief?


Though people are entitled to their own beliefs you could have demonstrated your own opposing belief by way of a quick price comparison, then left it up to your Dad couldn't you?

Mumfo77

Who's complaining?! I'm just telling people about what's happened with my parents to highlight the point of checking their elderly relatives policies. I had no reason to think they needed any assistance as I assumed they were shopping around. As I've said a number of times had I known they weren't shopping around I would've stepped in sooner. Therefore Quentin, until my dad died just over two weeks ago I didn't realise they had been with Zurich for just under 20 years.

jem16

Mumfo77 wrote: »

Who's complaining?!

I expect the words "exploited", "disgusting" and "ripped off" sounded very much like a complaint.

It's certainly good to remind people to help, although it's not just elderly people who don't shop around. However none of the above words apply.

rudekid48

Jeez! Give the OP a break - he's just lost his Dad 2 weeks ago!


First off, sincere condolences for your loss.


I understand your frustration and from a purely financial perspective you are right to feel aggrieved for them, but you really need to look at this another way; as you say, the higher premiums didn't cause them financial difficulties and a common view of that generation is that you can't always put a price on "peace of mind". So from that perspective, your Dad had the peace of mind of what he believed to be a good policy protecting his family home.

MaryWhistle

Omg, get off your high horses people. Surely you are human beings that have parents? Mumfo77 isn't writing a complaint as such on here, they have used words like exploited, ripped off and disgusting as that is obviously how they feel about their situation. They are entitled to feel that way and if you're honest with yourselves you would probably feel the same if the shoe was on the other foot. I for one would like to thank Mumfo77 for their advice as I checked my parents policy yesterday and they were in a similar position. I wouldn't normally get involved as my parents have always kept their finances private, but when I discussed this thread with them they were happy for me to use a price comparison website. I managed to save them just under £400 on a like for like quote meaning their cover wasn't compromised. I think Mumfo77 had a valid reason for posting this thread and I thank them for doing so.

margaretclare

I urge people that have elderly friends or relatives please find out what insurers they are with and how much they are paying for their insurance

OP, while I appreciate your shock and horror at the discoveries you've made, I think you under-estimate the hot water people may get into if they take your advice literally.

For example, if a younger friend/relative/neighbour came up to either DH or me and asked for details of our insurance policies, our response might be very short, sharp and to the point.

We are just a few years older than your parents. DH is 80 and I'm going to be 80 in a few weeks' time. It has been our practice for a very long time to review all insurance payments when they come up for renewal every year. We do the same for utilities.

You say your parents were 74 and 79 with no internet access. Nowadays everyone has internet access. They can get it by going down to their local library where - if ours is at all typical - they will find very knowledgeable people who are willing to help. Internet access has been available for a good few years now. If it hadn't been, DH and I would never have got together - in 1997!

There was recently a discussion on another part of this site to the effect that one partner dealing with all the money affairs is doing the other partner no favours. I've seen this myself when I used to be a CAB volunteer. A lady came in absolutely distraught because her late husband had 'seen to everything' and, until his affairs went through probate, she was almost penniless. That was when I persuaded DH that we should have a joint account just for utilities, insurances, council tax etc.

I long ago discovered that it was useless telling people how they could save money. But I do agree that there is no such thing as 'loyalty'. In fact, why should there be? It's a business transaction.

Mumfo77

I think you under-estimate the hot water people may get into if they take your advice literally.

Margaretclare, thank you for your comments however, I'm not suggesting people storm into other people's houses demanding to know information about personal finances, all im saying is there is nothing wrong with offering to help. If they would rather do it themselves then fair enough.

Nowadays everyone has internet access. They can get it by going down to their local library where - if ours is at all typical - they will find very knowledgeable people who are willing to help. Internet access has been available for a good few years now. If it hadn't been, DH and I would never have got together - in 1997!

My Mum has been housebound for many years now due to disability, my Dad is also disabled but can get out and about however, he has never had the need or desire to find a library in order to learn how to use a computer let alone the Internet. They met at a dance in the 60's so had no need to use Internet dating sites.

I've seen this myself when I used to be a CAB volunteer. A lady came in absolutely distraught because her late husband had 'seen to everything' and, until his affairs went through probate, she was almost penniless. That was when I persuaded DH that we should have a joint account just for utilities, insurances, council tax etc.

My parents have had a joint account for nearly 50 years, when my Mum fell pregnant my Dad was the only earner and as such took care of all of the bills. Many of these bills up until recently have been paid through the post office or pay point and not direct debit. My Dad enjoyed the interaction with real people in the community and believed it kept people in jobs. You have only reinforced the point I was trying to make though Margaretclare, in that you only persuaded DH to make changes to the way you took care of your finances after you worked for the CAB and were highlighted to the possible complications by the lady you saw.

All I was doing is making people aware of my situation, if you don't want or need the advice then please feel free to exercise your right to ignore it. If I only save one person money by doing this then I'm happy and have done what I set out to do.